There are changes coming soon to the Category A State Retirement Pension(based on a claimant's own national insurance record)- From 6/4/2016-
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35 years of contributions will be required to achieve a full State Retirement Pension, 10 years will be the minimum to qualify for any.
The new State Pension will be set above the minimum guarantee level for Pension Credit taking many claimants off means tested benefit.
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What about existing pensioners who won't get this higher rate of pension?
It will replace both the State Retirement Pension and Second State Pension.
From 12/10/2015, existing pensioners, and those due to reach State Pension age before 6 April 2016, will be able to acquire up to £25 of additional State Pension through a new State Pension top up scheme. The new type of voluntary National Insurance contribution is called Class 3A.
The government has issued guidance to cover this topic- click here.
Note it is anticipated that clients only have from 12/10/2015 to 5/4/2017 to decide whether to pay the voluntary class 3A National Insurance contributions. Some relevant factors about whether to pursue this will be whether the client is already on State Pension Credit, the costs involved and life expectancy.
Book Now on our updated Benefits for Older People Course taking place next week.